National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India based in Mumbai, Maharashtra.

[3]

It has been accredited with "matters concerning policy, planning

and operations in the field of credit for agriculture and other economic activities in rural areas in India".
Contents
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1 History 2 Role 3 Rural Innovation 4 References 5 External links

[edit]History NABARD was established on the recommendations of Shivaraman Committee, by an act of Parliament on 12 July 1982 to implement theNational Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). It is one of the premiere agencies to provide credit in rural areas. [edit]Role NABARD: 1. serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas 2. takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc. 3. co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation 4. undertakes monitoring and evaluation of projects refinanced by it. NABARD's refinance is available to State Co-operative Agriculture and Rural Development Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural Banks (RRBs), Commercial Banks (CBs) and other financial institutions approved by RBI. While the ultimate beneficiaries of investment credit can

be individuals, partnership concerns, companies, State-owned corporations or co-operative societies, production credit is generally given to individuals. NABARD has its head office at Mumbai, India NABARD operates throughout the country through its 28 Regional Offices and one Sub-office, located in the capitals of all the states/union territories.Each Regional Office[RO] has a Chief General Manager [CGMs] as its head, and the Head office has several Top executives like the Executive Directors[ED], Managing Directors[MD], and the Chairperson.It has 336 District Offices across the country, one Suboffice at Port Blair and one special cell at Srinagar. It also has 6 training establishments. NABARD is also known for its 'SHG Bank Linkage Programme' which encourages India's banks to lend to self-help groups (SHGs). Because SHGs are composed mainly of poor women, this has evolved into an important Indian tool for microfinance. As of March 2006 2.2 million SHGs representing 33 million members had to been linked to credit through this programme.
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NABARD also has a portfolio of Natural Resource Management Programmes involving diverse fields like Watershed Development, Tribal Development and Farm Innovation through dedicated funds set up for the purpose. [edit]Rural

Innovation
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NABARD's role in rural development in India is phenomenal.

National Bank For Agriculture & Rural

Development (NABARD) is set up as an apex Development Bank by the Government of India with a mandate for facilitating credit flow for promotion and development of agriculture, cottage and village industries. The credit flow to agriculture activities sanctioned by NABARD reached Rs 1,574,800 million in 2005-2006. The overall GDP is estimated to grow at 8.4 per cent. The Indian economy as a whole is poised for higher growth in the coming years. Role of NABARD in overall development of India in general and rural & agricultural in specific is highly pivotal. Through assistance of Swiss Agency for Development and Cooperation, NABARD set up the Rural Infrastructure Development Fund. Under the RIDF scheme Rs. 512830 million have been sanctioned for 2,44,651 projects covering irrigation, rural roads and bridges, health and education, soil conservation, water schemes etc. Rural Innovation Fund is a fund designed to support innovative, risk friendly, unconventional experiments in these sectors that would have the potential to promote livelihood opportunities and employment in rural areas.
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The assistance is extended to Individuals, NGOs,

Cooperatives, Self Help Group, and Panchayati Raj Institutions who have the expertise and willingness to implement innovative ideas for improving the quality of life in rural areas. Through member base of 250 million, 600000 cooperatives are working in India at grass root level in almost every sector of economy. There are linkages between SHG and other type institutes with that of cooperatives.

The purpose of RIDF is to promote innovation in rural & agricultural sector through viable means. Effectiveness of the program depends upon many factors, but the type of organization to which the assistance is extended is crucial one in generating, executing ideas in optimum commercial way. Cooperative is member driven formal organization for socio-economic purpose, while SHG is informal one. NGO have more of social color while that of PRI is political one. Does the legal status of an institute influences effectiveness of the program? How & to what an extent? Cooperative type of organization is better (Financial efficiency & effectiveness) in functioning (agriculture & rural sector) compared to NGO, SHG & PRIs.
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Recently in 2007-08, NABARD has started a new direct lending facility under 'Umbrella Programme for Natural Resource Management' (UPNRM). Under this facility financial support for natural resource management activities can be provided as a loan at reasonable rate of interest. Already 35 projects have been sanctioned involving loan amount of about Rs 1000 million. The sanctioned projects include honey collection by tribals in Maharashtra, tussar value chain by a women producer company ('MASUTA'), ecotourism in Karnataka
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etc.

[edit]References

1. 2. 3.

^ "25 YEARS OF DEDICATION TO RURAL PROSPERITY". Nabard.org. Retrieved 2010-09-01. ^ "Apex Development Bank with a mandate for facilitating credit flow". Nabard.org. Retrieved 2010-09-01. ^ "Nabard Rural Innovation Fund | Agriculture and Industry Survey". Agricultureinformation.com. Retrieved 2010-09-01.

4.

^ EDA and APMAS Self-Help Groups in India: A Study of the Lights and Shades, CARE, CRS, USAID and GTZ, 2006, p. 11

5.

^ "Nabard can help change face of rural India". The Hindu Business Line. 2010-06-28. Retrieved 2010-0901.

6. 7.

^ "NABARD SDC rural innovation fund". Indiamicrofinance.com. Retrieved 2010-09-01. ^ "SSRN-Evaluating Effectiveness Among Cooperatives vis-a-vis Other Social Institutes - A Case Study of Nabard's Rural Innovation Fund & Other Schemes by Vrajlal Sapovadia". Papers.ssrn.com. Retrieved 2010-09-01.
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8.

^ "Karnataka lags in using Nabard rural infra fund". Business-standard.com. 2010-04-12. Retrieved 201009-01.

9.

^ "National Bank for Agriculture and Rural Development". Nabard.org. Retrieved 2010-09-01.

[edit]External

links

Official website

[hide]v d e Central bank Reserve Bank of India NABARD

Banking in India

Nationalised banks

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India

Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India Unite State Bank Group

State Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore Axis Bank Bank of Rajasthan Catholic Syrian Bank Dhanalakshmi Bank South Indian Bank City Union Bank Federal

Private banks

Bank Karnataka Bank Limited Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Nainital Bank Ratnakar B Bank

Foreign banks

ABN AMRO Abu Dhabi Commercial Bank Antwerp Diamond Bank Arab Bangladesh Bank Bank International Indonesia

Scotia The Bank of Tokyo-Mitsubishi UFJ Barclays Bank Citibank India Credit Suisse HSBC Standard Chartered De Regional Rural banks Financial Services North Malabar Gramin Bank South Malabar Gramin Bank Pragathi Gramin Bank Shreyas Gramin Bank

Real Time Gross Settlement (RTGS) National Electronic Fund Transfer (NEFT) Structured Financial Messaging System (SF

Overview
NABARD is set up by the Government of India as a development bank with the mandate of facilitating credit flow for promotion and development of agriculture and integrated rural development. The mandate also covers supporting all other allied economic activities in rural areas, promoting sustainable rural development and ushering in prosperity in the rural areas.

With a capital base of Rs 2,000 crore provided by the Government of India and Reserve Bank of India , it operates through its head office at Mumbai, 28 regional offices situated in state capitals and 391 district offices at districts.
Contact NABARD It is an apex institution handling matters concerning policy, planning and operations in the field of credit for agriculture and for other economic and developmental activities in rural areas. Essentially, it is a refinancing agency for financial institutions offering production credit and investment credit for promoting agriculture and developmental activities in rural areas.

NABARD today Initiates measures toward institution-building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.

 Coordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with the government of India , State governments, the Reserve Bank of India and other national level institutions concerned with policy formulation Prepares, on annual basis, rural credit plans for all the districts in the country. These plans form the base for annual credit plans of all rural financial institutions Undertakes monitoring and evaluation of projects refinanced by it Promotes research in the fields of rural banking, agriculture and rural development Functions as a regulatory authority, supervising, monitoring and guiding cooperative banks and regional rural banks NABARD's Roles and Functions are summarized below:
Credit Functions Developmental and Promotional Functions Supervisory Functions Institutional and Capacity building Role in Training